According to a press release issued by the government, several far-reaching decisions on bilateral economic and financial cooperation were reached during the discussions held between Pakistani and Saudi officials:

It was agreed that Saudi Arabia will place a deposit of US $3 billion for a period of one year as balance-of-payment support. A memorandum of understanding (MoU) was signed in this regard between Finance Minister Asad Umar and his Saudi counterpart Muhammad Abdullah Al-Jadaan.

It was also agreed that a one-year deferred payment facility for import of oil, up to $3 billion, will be provided by Riyadh. This arrangement will be in place for three years, after which it will be reviewed.

Saudi Arabia also "confirmed its interest" in investing in a petroleum refinery in Pakistan. An MoU for this project will be signed after obtaining the cabinet's approval.

The Kingdom also expressed interest in the development of mineral resources in Pakistan. In this regard, the federal government will hold consultations with the Balochistan government, following which a Saudi delegation will be invited to Pakistan to finalise matters.

Prince Mohammed agreed to the premier's suggestion for reduction of Saudi visa fee for Pakistani workers, "which is a significant step towards enhancing Pakistan’s workforce in [the Kingdom], as well as facilitating travel of people from both countries".

However, Khan has in recent days sought to avoid going to the IMF and still wants to at least reduce the size of any bailout by appealing to “friendly countries” for bilateral financial support.

The prime minister's attendance at the FII comes as leading policy-makers and corporate chiefs shunned the conference in response to the death of journalist and Saudi government critic Jamal Khashoggi at the Kingdom's consulate in Istanbul — a scandal that has tipped Riyadh into a diplomatic crisis.

The Saudi pledge comes days after the State Bank warned inflation could double in the coming year — hitting 7.5 per cent — while the country's growth target rate of 6.2pc would likely be missed.

Finance Minister Umar had on Saturday warned the country was fast heading towards bankruptcy.
However, he promised to end the country's reliance on IMF bailouts to shore up the shaky economy, as officials prepared to negotiate a new loan.

An IMF team is set to arrive in Pakistan in early November to begin negotiations.

Let’s see. Sometime soon a u turn will be made or this story will be buried without informing the public the reality. Just like it’s happened countless times before.

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Murlidharan

Oct 23, 2018 08:29pm

Loan is afterall loan - Pakistan adding loan over loan.

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Shy Guy

Oct 23, 2018 08:29pm

In exchange of ?

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TQ

Oct 23, 2018 08:30pm

Excellent, very happy to hear that.

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Asif

Oct 23, 2018 08:32pm

Not bad diplomacy. Very well done IK. Hope we get more loans on good terms.

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Assad

Oct 23, 2018 08:33pm

Thanks to our Saudi brothers for this support. Pakistan must take a NEVER AGAIN lesson from this and break the financial shackles for once and for all!

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Fazal Mehmood Qureshi

Oct 23, 2018 08:33pm

I think we must read all news of the world.

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IQBAL HADI ZAIDI

Oct 23, 2018 08:34pm

Beauty super beauty! PM Imran you have saved us going to IMF but now you will have to work with devotion and dedication because Saudi King by giving billions have ended your worries. Unsolved problem is solved in just one meeting, aameen. Long live Saudi King and Long live PM Imran. Iqbal Hadi Zaidi

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Feroz

Oct 23, 2018 08:34pm

Is this a loan for a year or grant ?

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Maha Mitra

Oct 23, 2018 08:36pm

Well done IK. At least now Pakistan can keep IMF waiting and guessing.

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ABE

Oct 23, 2018 08:37pm

Success at last! This strengthens Pakistan's position in negotiating a loan from the IMF. At least Saudis are coming through, only because they need as many supporters for the Royal family at a time, whne the West is breathing down their neck over the Istanbul murder scandal, implicating MBS.

But Pakistan should also play smart and safe and hedge her bets by diversifiying sources of loans and financiing, Do no put all your eggs in one basket. In the long run, House of Saud will only use Pakistan in exchange for the money and transactions. Pakistan should seek investments and loans for different sources so not overly depend on handful or even a single source, like China or Saudis or even the IMF.

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Czar

Oct 23, 2018 08:38pm

How can you be an independent country when you continue to seek aid and loans from other countries? Absolutely shameful.

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Life

Oct 23, 2018 08:38pm

Thank you Saudi Arabia. We hope you had neither asked for troops deployment at your wish nor any NRO deal.

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Zak

Oct 23, 2018 08:39pm

Saudis dont mind lending to an honest leader. As per wikileaks, the Saudi monarchs thought Nawaz and Zardari to be most crooked and corrupt leaders they had ever encountered.

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Imad khan

Oct 23, 2018 08:39pm

Good gesture. They could give more though

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Shumail Arshad

Oct 23, 2018 08:40pm

Wow.. that's a good news. A little bit of relief in this crisis situation created by PML-N incompetent leaders and PPPP crooks

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sb

Oct 23, 2018 08:40pm

Tought , PM has gone for inviting investment...but settled for another loan...

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Adnan Mazher Khan

Oct 23, 2018 08:41pm

Kind gesture by our brethren country. We owe this debt with gratitude and respect.

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Zak

Oct 23, 2018 08:42pm

Thats great news. IK looks burdened by the follies left behind by the corrupt and crooked past government. He is trying to sort things out and keep to his promises. Not an easy task, but then IK does not shy away from a challenge. He wins.

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sammy

Oct 23, 2018 08:42pm

I want to know the strings attached with this....

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NWA

Oct 23, 2018 08:43pm

IK is doing this for people of Pakistan.

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brr

Oct 23, 2018 08:43pm

What do they get in return?

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Raj, CA, US

Oct 23, 2018 08:43pm

Sounds too good to be true. What are they getting in return? Is this a Gift, or Investment, or Loan?

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Faran

Oct 23, 2018 08:46pm

But Sir, How we going to pay back the loan and and interest. $3B is still a drop in the ocean.

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Abby

Oct 23, 2018 08:49pm

Well well well... Finally some respite.. Hope the funds are not diverted anywhere else

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Ammar Ahmed KSA

Oct 23, 2018 08:50pm

The Great Imran Khan! It's very easy for him to enjoy the Govt and power that comes with it and take IMF loans but in the interest of Pakistan he is struggling and ensure the objectives are achieve with least amount of cost and restrictions.

All who want to call him bigger have their right to say anything about IK, but I want to sound loud and clear that all such kind of peeps are more loyal to their political parties than to Pakistan or are dumb enough not understand what IK is doing.

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M Z Khan

Oct 23, 2018 08:51pm

I hope this assistance did not come at a Politico-Diplomatic price

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Anti-Corruption_Pakistani

Oct 23, 2018 08:52pm

Good news for Pakistan, after all PM Imran Khan's persuasion power, honesty, trust and anti corruption policies have produced good results. This is what I call 'Tabdili' and trust on new government's vision for Pakistan - well done PM!

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Curios

Oct 23, 2018 08:52pm

With Saudis as friends and backing of Chinese loans, no one can stop Pakistan's quatom growth.

Should we be proud of this? What impression wil be sent to the world about us as a nation? Till when wil we continue doing this? When will this stop?

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Shahdab

Oct 23, 2018 08:58pm

The magic of IK.

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ALI

Oct 23, 2018 09:00pm

Good job Captain.

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tuk tuk tuk

Oct 23, 2018 09:01pm

I thought IK was there for investment conference but the real reason is this. Okay.

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Haramullah

Oct 23, 2018 09:01pm

@Srini These funds are needed to repay the debts for time being.

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Bobby Paul

Oct 23, 2018 09:02pm

Good news for Pakistan and IK

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Veer Singh

Oct 23, 2018 09:02pm

And what does Pakistan have to give back in return? There are no free lunches!

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SHASHANK

Oct 23, 2018 09:03pm

It's for a year.. it needs to be returned.. but it will provide Pakistan some breathing space.. ok can now try to turn the economy around

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Ahsan Gul

Oct 23, 2018 09:04pm

Regardless what some of our corrupt politicians are saying, IK is going to prove himself differently as honest, caring and lover of Pakistan.

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Ash Man

Oct 23, 2018 09:05pm

Good relief. Especially when there is no mention of any interest.

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N. Rahim, Toronto

Oct 23, 2018 09:10pm

@Murlidharan Interest free. I will call it a good deal.

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Right Voice

Oct 23, 2018 09:11pm

Another year to play musical chairs.Then by magic all will be well.

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N. Rahim, Toronto

Oct 23, 2018 09:12pm

@Feroz Loan for a year. Presumably interest free. To be returned. The petroleum deal is for deferred payment for 3 years and then they will review. This is good news in my opinion.

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Close Observer

Oct 23, 2018 09:12pm

This is good news. Hopefully, his efforts will pay off. This is the first time we are witnessing the government foriegn policy in action. Previously we never observed such transparency about what our biggest issues are.

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Kirby

Oct 23, 2018 09:13pm

Way to go "Kaptan". The World trusts you and your work ethics.

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Concerned Citizen

Oct 23, 2018 09:13pm

Although I am a Critic of Imran but this development is a positive development and i praise his negotiating abilities.

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sam

Oct 23, 2018 09:14pm

well done Mr PM . Saudia trip has worked out.

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N. Rahim, Toronto

Oct 23, 2018 09:16pm

@Faran Increase export and tax base. Decrease import. Improve governance. Reduce flight of money. Get velocity... There are many ways. If there is a will there is a way.

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Spaced Out

Oct 23, 2018 09:18pm

Good job by IK. Too all those crticizing IK, he did his job as PM and help Pakistan. This proves that he is not a fool and willing to the bullet when needed.
One only hopes that he is able to now get on the task with fixing Pakistan economy and create jobs. The world needs a stable Pakistan.

I believe Imran Khan's intentions are good and he's trying to do everything he can to save Pakistan from bankruptcy. Having said that, getting loans from Saudis or IMF is like putting a band-aid on a gunshot wound. For Pakistan's economy to get back on track, it will have to be fundamentally changed which will take time. Pakistan will need to cut defense spending, increase spending in education, cut non essential imports drastically and build its manufacturing & services industries. Once the above happen, only then will Pakistan be able to sustain itself financially otherwise it will be in the same situation in a few years under a different government.

Or do you suggest Pakistan start an online charity drive for the everyone in the world to contribute just $1 each?

Do you know how much debt the US has? It has only been growing for the past century, not getting reduced. Ask yourself why??

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H

Oct 23, 2018 09:23pm

Where are those anti-PTI-ers? Only talks on twitter? How about now folks?

This government really does care about this country. So just let it do the job. Stand aside for once!

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Rahul

Oct 23, 2018 09:25pm

All those who are rejoicing upon an over due respite should also remember that this is still a loan. Eventually you will have to pay it back. It is just a temporary respite. And Pakistan needed $12 billion. Where are you going to get the remaining $9 billion?

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Shoaib, Indian kashmiri

Oct 23, 2018 09:27pm

I have never seen a country celebrating approval of loan and also at the cost of mineral resources from Balochistan.

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Czar

Oct 23, 2018 09:27pm

I dont understand why there's jubilation and people thinking this is an accomplishment. When are we going to learn lessons to focus on economy and education so that we are financially strong so we don't have to beg for charity. Also, remember when somebody doing a favor, they want something in return. There is no such thing as "brotherly" relations, only business relations.

Right-wing Indian trolls show their true colours by impersonating – no one can be "proud" of your cowardly act that only you are capable of!

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AIJAZ ALI

Oct 23, 2018 09:30pm

Saudi Arabia should rely more on Pakistan instead US, Pakistan can do more for them. Thank you KSA to support IK Government.

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Chaudhry

Oct 23, 2018 09:32pm

No news about visa fees reduction???

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Suraj71

Oct 23, 2018 09:35pm

Good! He has secured money for oil import which is the biggest item of import. The saudi oil is costlier than Iran's but still helpful in this crisis.Now IK is not likely to obey IMF and make the ambiguous CPEC terms public.May Malaysia can help with few millions.

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Lilly

Oct 23, 2018 09:36pm

Chinese recently dropped a bomb that CPEC repayments will only start by 2023. Imagine the amount needed by then to keep Pakistan afloat. Would be interesting times.

This should shut the mouths of those who were criticising not going to IMF earlier!

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Hwh

Oct 23, 2018 09:39pm

Please publish the details of the loan. Presently Saudi is under tremendous pressure by USA. So.....

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Kunal

Oct 23, 2018 09:40pm

In return ? Nothing comes free

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Yusuf

Oct 23, 2018 09:42pm

Loan to repay another loan. Hope this doesn't turn into loan trap

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Hafiz Munir

Oct 23, 2018 09:43pm

Great vote of confidence by Saudis in IK and his government.

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Yogesh

Oct 23, 2018 09:44pm

@Assad Until next time!

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Ijaz

Oct 23, 2018 09:45pm

And what happens on a year's time?

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Pro Truth

Oct 23, 2018 09:46pm

@Veer Singh Dont worry, its for us to think about!

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Pashtoon

Oct 23, 2018 09:48pm

Weldon Imran Khan you are true leader of Pakistan after Quaid-e-Azam

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Pakistani

Oct 23, 2018 09:50pm

A true leader only could do that, thank you Saudia Arabia thank you PM Khan Sb

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leena

Oct 23, 2018 09:51pm

@Murlidharan 250 billion $ debt on India.

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Khalid

Oct 23, 2018 09:51pm

Well done Imran Khan. Keep going and don't waste your time on the opposition.

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M Naqvi

Oct 23, 2018 09:53pm

Congratulations and Well done IK and Naya Pakistan team.

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Ashraf Gilani (Kashmir, India)

Oct 23, 2018 09:54pm

What is the interest rate for one year? What are the repayment terms?

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leena

Oct 23, 2018 09:54pm

Sleepless night in India.

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Raju

Oct 23, 2018 09:58pm

Loan....loan......lot of loan

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M Naqvi

Oct 23, 2018 09:58pm

@Anti-Corruption_Pakistani I think IK's honesty is the key to clinch this deal.

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Naveed Ahmad

Oct 23, 2018 09:58pm

Nicely played Captain. Cover drive to mid on and it is a four. Saudis are under pressure due to Jamal Khashogi murder. Many head of states boycotted the FII conference. They need friends at this moment and delivered to Pakistan. Wait for the next loose ball.

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Hajira Aslam

Oct 23, 2018 09:59pm

A Great achievement towards Pakistan,credit goes to Khan Sab

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Jamal Ahmed

Oct 23, 2018 09:59pm

Well done PM. An honest and sincere leadership is trusted by outsiders and such leadership can take Pakistan up in the sky. Good work.

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Danish

Oct 23, 2018 10:01pm

What a achivment Mr PM congratulations got 3 billion loan . How we will going to pay this debt ? Any idea..

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Jamal Kharashogi

Oct 23, 2018 10:02pm

Nothing comes without strings.What Pakistan is giving back to SA?

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Sardar Balwinder

Oct 23, 2018 10:04pm

What's to be proud about? That the Saudis own Pakistan and Pakistan has to live on borrowed funds?

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aisha

Oct 23, 2018 10:05pm

Saudi Arabia best friend of pakistan. Saudi Arabia zindabad.

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Amir Dewani- U.S.A

Oct 23, 2018 10:06pm

A friend in need is a friend indeed. But, there should not be any sort of NRO! The deferred payment of oil imports will definitely make it easy for the poor to breath a sigh of relief. This beautiful country of Pakistan is not short of natural resources. It's man power is the biggest resource. However, the financial deficit related problems are all due to mismanagement, corruption, and money laundering by the well known swindlers. PM Imran Khan is 'Sadiq and Amin'. He must render all the support to the NAB. Though, there are some hidden hands implanted by the past two set of rulers, and even NAB's own prosecution is so weak' but given public trust and good governance, the country will come out of it's numerous problems.

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ShahidF

Oct 23, 2018 10:11pm

Good news for Pakistan.However we should still go to IMF but for a smaller amount and with mild conditions.Following an agreed program under IMF will indicate that appropriate structural reforms are being taken,which in any case expected from PTI,to secure confidence of international community.

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Dr. M A Ezad UK

Oct 23, 2018 10:11pm

This is very good news for Pakistan, gives breathing space to IK/PTI. I hope he continues he charm offensive to woe foreign investment on favourable terms. If we can avoid IMF or at least get the terms softened it will matter a lot not only to this beleaguered government but also to Pakistan. We know what the previous two governments have done!

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Indianmuslim

Oct 23, 2018 10:13pm

KSA would not give money out of brotherly love. What is the price that Pakistan needs to pay ? Or will that also be as clear as CPEC details ?

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Asif

Oct 23, 2018 10:14pm

This shows credibly of IK. No one would give money to crooks like sharif or Zardari

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Lahori kid

Oct 23, 2018 10:14pm

People will always find reasons to be negative. Always find reasons to complain, and ask the government of its intentions. But in the last 10 years, same people never once said a word, look where we are today.

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Usman Khan

Oct 23, 2018 10:19pm

And in return the Saudis want what exactly?

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Anees A.

Oct 23, 2018 10:24pm

@Faran Its a big drop. Almost 25% of what they were looking for

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Common Man

Oct 23, 2018 10:24pm

Congratulations IK. You are successful to secure first loan of your tenure.

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Dr Hilaria

Oct 23, 2018 10:27pm

Very good, if it is a free lunch.

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Sameer

Oct 23, 2018 10:33pm

This is a big win for the gov. Lets hope these 3 billion are meant for Pakistan and dont fall in the hands of the corrupt. With Chinese investment enroute, IMF can no longer push its demands on us. Embarrassing for Zardari who wished to call an APC tomorrow to motion failure of gov.

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sri

Oct 23, 2018 10:34pm

No matter what the terms, this was a needed fund to get some breathing room. China must not be happy...they have to wait another year or two to tighten the noose on Pakistan.

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Reality

Oct 23, 2018 10:35pm

What will be the actual cost to Pakistan?

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confused

Oct 23, 2018 10:37pm

Saudi Arabia always helped Pakistan. No doubt , they are reliable.

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Ahmed

Oct 23, 2018 10:39pm

Thats how you pursue your foreign policy and win through diplomacy.

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Citizen

Oct 23, 2018 10:39pm

Then in return?

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KSRana

Oct 23, 2018 10:42pm

They are so haapy for 3bln loan

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Magnanimous approach

Oct 23, 2018 10:50pm

A timely injection of steroids, and adrenaline. But this does not means a slight sleep or forgetting the speed of recovery. The Accountability Courts must act strict and fast . The investigating institutions must respect the mood of silent majority, and no deal, no tolerance, they must deliver, the nation needs its money back from all looters, that the most divine compulsion of today.

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Naresh

Oct 23, 2018 10:58pm

@IQBAL HADI ZAIDI - This arrangement would be for interim period i.e. till the time IMF agrees for and disburse of the funds. Remember Chinese funds of $2bln shortly after IK took over. It has already vanished.

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Hakim

Oct 23, 2018 10:58pm

Bring the looted money back. That should be the priority of PTI

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Asim

Oct 23, 2018 10:58pm

@IQBAL HADI ZAIDI wake up brother, it's rise and shine!

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Iqbal

Oct 23, 2018 11:00pm

@Murlidharan many wealth are build from loan. When you are short then loan is not bad if use properly

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Tdh

Oct 23, 2018 11:06pm

Good luck Pakistan. Hope you can pay back in due time

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Amin

Oct 23, 2018 11:09pm

Excellent diplomacy by IK

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Majnu

Oct 23, 2018 11:10pm

@Mubashir Munir What does Saudi Arabia expect from Pakistan in return? Isn't this the same way entire CPEC saga started, leading to this fate of economy?

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Naved

Oct 23, 2018 11:15pm

Appreciating KSA. How Pakistan will reciprocate KSA's good gesture and help.

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Aditya

Oct 23, 2018 11:15pm

It’s a pity that people just comment after reading only the headline- for people asking if it’s s loan or investment or grant - please read the 1st paragraph - it clearly says it’s a deferred payment plan - ie Pak buys 3bn worth of oil from Saudi and they pay an year later. I guess it will help with cashflow but not much. Also rates are not disclosed here - is it competitive to what Pak will b paying if deferred payment plan was not there? Are there any other strings attached? Only time will tell.

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Maya

Oct 23, 2018 11:46pm

@Assad adding more loans is strengthening the shackle.

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Bogus

Oct 23, 2018 11:49pm

This is just show money to strengthen Pakistan hand in negotiations, these are just words you will never see a dime of that money. If this is true then we already got roughly 12 billions from Saudis, why go to IMF now??????????

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Waqar Ahmad

Oct 23, 2018 11:49pm

You cannot match the sacrifices of this man for Pakistan.

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muhibbewatan

Oct 23, 2018 11:57pm

IK should come clean with whatever took place in Saudi Arabia as the nation would certainly wish to get it straight 'from the horse's mouth" in order to rest assured that the PM hasn't compromised on anything so far as human rights and/or other principled stand that is expected of him as an 'honest' leader, which he has professed to be.

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naji

Oct 24, 2018 12:00am

Thank you Kingdom of Saudi Arabia,You are really nice people of a greatest country. Good work Imran Khan.

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AMIR

Oct 24, 2018 12:12am

All weather friend to Pakistan. Pakistanis are very proud of this friendship.

Enemies will always crib as usual. No more IMF or FATF... the true Kapitan is leading us to victory!

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My Comments

Oct 24, 2018 12:44am

Wonderful. This gives some relief from financial crises. However, going forward, it requires investing money wisely and planning for economic growth through increased productivity and reduction in import of luxury items. People of the country need to be patriotic at this and help reduce corruption and wastage of tax payers money to help progress of the country.

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Anjan Majumdar

Oct 24, 2018 12:46am

@Curios Absolutely! With CPEC, we will be top 3 economies in the world.

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Malik

Oct 24, 2018 12:59am

Commendable support to Pakistanis.

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Admire and accepted

Oct 24, 2018 01:07am

@Pak_UK you are right. Hats off for PM Imran Khan. Thanks for our truly brother country Saudi Arabia. Indeed Saudi Arabia has helped Pakistan whenever we were in difficulty. It is a 12 billion loan without interest. Hope that our all weather friend China will also help Pakistan in this time of need.

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noname

Oct 24, 2018 01:15am

Its not just in case of Pakistan, all such MOU's details should be placed in public domain so that the pro's and con's can be evaluated...anyway in this context I think receiver has hardly any option but to sign on the dotted line.

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RAVEN

Oct 24, 2018 01:19am

Loan

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Pathanoo

Oct 24, 2018 01:22am

We need a long term an dpermanent solution not these temporary Band Aids. Though, for now we do not have a choice. But this cycle must be ended.

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Khan

Oct 24, 2018 01:29am

A friend in need is a friend indeed

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Khan

Oct 24, 2018 01:31am

Unlike previous rulers this money will be spent on the people not on ministers

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MZH

Oct 24, 2018 01:47am

Welldone IK, thank you KSA

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Anon

Oct 24, 2018 02:07am

@Czar The fact of the matter is that successive dysfunctional goverments over many decades have created this presicament. It is disingenuous to think that a new political party taking charge for the first time would not have to wean off the economy from loans. This is the reality of the situation.

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Questioner

Oct 24, 2018 02:09am

What are we giving in return? No one gives you a free lunch. What are the details?

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Robert

Oct 24, 2018 02:12am

@Murlidharan These loans are generally written off over time. The giver of the loan knows that some loans are non-refundable but still call such "loans" as loans. The United States "loans" to many countries are used for political purposes and most of them forgiven. Pakistan has paid high political price for such loans.

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Anonymouseeeee

Oct 24, 2018 02:14am

Excellent news.
IMF is not welcome anymore.

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RAja Raman

Oct 24, 2018 02:41am

@Aditya, Rightly pointed out. This is only a breather and already people are displaying their patriotism by celebrating deferred payment as if it's a big achievement. Complete ignorance.

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A

Oct 24, 2018 03:02am

China will have hope of getting its money now unless ikpm and ghq leaves some for them and yes after that something is still left some development might happen as well.

And CPEC was going to solve all problems? But it did not get any customer yet besides lender himself.

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Lodhia Ebrahim

Oct 24, 2018 03:18am

@Wahab Stop being negative. Give PM a break.
He is at least trying and achieved some relief for the country.

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abdul said

Oct 24, 2018 03:29am

the only way forward.

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Raja Farhat Abbas

Oct 24, 2018 03:36am

A friend in times of need is a friend indeed, thank you S.Arabia.

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Dr Haroon

Oct 24, 2018 03:52am

Pakistan WIll go to the IMF for its symbolic value as this would help them to deal with other financial institutions. But now they have more flexibility when it comes to negotiations, and I don't expect them to ask IMF more than 5-6 billion dollars.

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Barat

Oct 24, 2018 03:54am

It is a matter of pride that Pakistan does not want to go to the IMF. The reason may be because of the US influence with the IMF.
But unlike Saudi Arabia, the IMF will bring some discipline into the the financial governance of Pakistan. I would always say - go to the IMF first and then top it uo with help from friends

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Dr Haroon

Oct 24, 2018 03:56am

But this is not the solution. Of course they would have to work on exports and devaluation of currency makes their products more competitive. But what they could focus on immediately is to make the inflow of remittances through legal channels easier and incentivised. Banks could offer competitive rates, ensure money is available within 24 hours and so on.

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Arun

Oct 24, 2018 04:02am

The bad news is that this money needs to be paid back.

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zf

Oct 24, 2018 04:12am

A deposit of $3 billion, unheard of in today's world. That's PM Khan and his credibility for you!

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Kashmiri

Oct 24, 2018 04:18am

@Czar even the UK borrows money, that is not the issue. Money has been siphoned by corrupt people and has led to this situation. The Pak PM has asked a friendly governments help to alleviate the pressure that the IMF would have applied. Erdogan had to down the same route as the turkish economy was in a shambles due to the coconuts of the secularist elite who could only try to ape their masters rather innovate.

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Anand

Oct 24, 2018 04:28am

Is there is a fate worse than being indebted to the arabs ?

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prabh singh

Oct 24, 2018 04:31am

@IQBAL HADI ZAIDI still going to IMF

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Dev Mehta

Oct 24, 2018 04:46am

Great development! Keep this money in your pocket and ask China how come belt and road is China's ambition and you are responsible for its full cost in Pakistan with interest and guaranteed profits. Renegotiate now to cut the debt down. Walk out of trap.

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Jamal

Oct 24, 2018 05:14am

On what conditions?

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Texas

Oct 24, 2018 05:43am

Great work. its not most desirable but he didn't create this situation. People who blindly voted for looters over the last 30 years did. However, this reduces his government's burden for next 12 months to bring real economic changes. A lot of work ahead but Rome wasn't' built in one day.

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Rehman

Oct 24, 2018 05:44am

This is really good news. Together with the help of Saudi Arabia and China, we will have a real opportunity to completely remove poverty from Pakistan, and eventually aim to become a super-power.

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Rehan

Oct 24, 2018 05:53am

At what conditions???

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anwarsher

Oct 24, 2018 06:18am

With this deal goodbye to Pak-Iran friendship. Saudi have been waiting for this kind of opportunity. There is no free lunch as they say in economics.

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Abbastoronto

Oct 24, 2018 06:19am

Saudi terms are usually more usurious than IMF.
Political optics may be good , but financially unwise. A loan is a loan. Pak Saudi trolls will portray it as an act of a brother nation saving Pak.

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malik

Oct 24, 2018 06:21am

@Pak_UK
Pti support are always narrow minded

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King

Oct 24, 2018 06:21am

@leena we have purchased s400 which cost more than billions dollars

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lkhan

Oct 24, 2018 06:29am

Proud day for Pakistan. Hearing the PM speak such good sense in KSA, and then the bailout news..

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ZAHID ABBASI

Oct 24, 2018 06:33am

Great Leader - now imagine NS and ZD - still we don't understand the value of IK.

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Lord Ickenham

Oct 24, 2018 06:42am

It's another loan. No matter what you call it. IMF is unavoidable. And this deal made the IMF loan terms even worse as IMF would see a further indebted country

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Nasir

Oct 24, 2018 06:49am

Good , just hope given the world situation around SA we are on right side of history and world politics.

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Hello

Oct 24, 2018 06:53am

@leena and 400 billion cash in treasury

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Absolutely

Oct 24, 2018 06:56am

Nothing much relaxing because it is loan with interest. It's not helping payment make of business mind. After some time king will surely says 'you have to pay IK'

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Zak

Oct 24, 2018 07:02am

How long is this loan going to last ???

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Ahmed khan

Oct 24, 2018 07:06am

@Murlidharan well said

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Antique

Oct 24, 2018 07:15am

The government as well as opposition unanimously pass a resolution in the parliament to thank KSA. Billions of dollars of aid from KSA is a serious favour for Pakistanis. We should also notice the attitude of other donor countries as well as financial institutions towards Pakistan.

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Tee

Oct 24, 2018 07:18am

Pakistan is just getting a new loan to repay the old loans. This is just buying time.

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independentthinker

Oct 24, 2018 07:29am

@Sammy the strings are simple - don't join the rest of the world in condemning them for the killing of the Washington Post journalist.

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Ankt

Oct 24, 2018 07:36am

What have the Saudis asked for in Return ? A transparent government should reveal that too.

There is no free lunch, are certainly no free 3 Bn dollars !!!

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Be honest

Oct 24, 2018 07:44am

@Czar It is a dire need of the current situation. Previous corrupt leaders looted wealth and damaged the economy. It is not time to fix it. Pakistan will overcome all the challenges under the leadership of Imran Khan.

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Be honest

Oct 24, 2018 07:50am

Many people are asking what in return Pakistan has to offer. I believe in return, Pakistanis have to give dua to Saudi government and its people to help Pakistan. PM's next visit to China will root out IMF to great extent. Saudi government has a trust on Imran Khan and truly believe in his tireless efforts to boom Pakistan's economy. Stock market is keep ascending after this news.

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Be honest

Oct 24, 2018 07:54am

@Veer Singh I fully agree with you Veer bhai. That's what the government is trying to do but our foolish and dumb opposition party PML N is sitting outside Punjab Assembly and protesting to reinstate six corrupt members of parliament, who were sacked for their involvement in corruption.

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Truth

Oct 24, 2018 08:30am

Is it a interest free loan ?

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DK PAMNANI

Oct 24, 2018 09:29am

Every Pakistani must thank Saudi Arabia for bailing out Pakistan from financial crisis.

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R.N.Patney

Oct 24, 2018 10:58am

Good job IK .Pakistan can breathe for few more months .

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lkhan

Oct 24, 2018 11:45am

@Veer Singh India has one of the biggest defence budgets worldwide, and extreme poverty as well. If only both countries cut their defence budgets, and dedicated their resources to alleviate poverty, improve gender issues, bring sanitation, energy, water education and social welfare to the less fortunate, open borders to trade, S Asia could begin to grow economically as China and the tiger states..

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Taimur

Oct 24, 2018 12:33pm

Excellent. Great job. When NS was doing the same then he was wrong but now it is perfect. We love you sir

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M Naqvi

Oct 24, 2018 03:08pm

@zf you kidding Zardari and mates deposit billions daily and then transfer these abroad like a flash.

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r c naik

Oct 24, 2018 04:38pm

@Assad ..For this PM Imran Khan will hav to take unpopular steps and increase taxes

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Amir Khan Bangash

Oct 24, 2018 04:49pm

Very well done PM and thanks to SA.

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Anwar

Oct 24, 2018 07:49pm

Now Pakistan can pay off Chinese loans

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MONIER

Oct 24, 2018 07:57pm

That was a sixer no doubt

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twopat

Oct 24, 2018 08:51pm

@Naveed Ahmad
Next ball - a six!

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Jcee

Oct 24, 2018 08:57pm

Mubarak ho!

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Lahori kid

Oct 24, 2018 09:23pm

@Aditya Pity? The $3 billion in deferred payment is for the oil, the question was about the other $3 Billion ? You might want to read the whole thing yourself before making comments on comments.

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Lahori kid

Oct 24, 2018 09:27pm

@Citizen. Then in return, you will be able to not pay a lot higher prices( Hopefully) You will not have to worry about your country being in a financial mess. The mentality of everything comes with a price or a something in return is disgusting. You may think like that, but not everyone has gross motives behind what they do. Imran Khan may not be the smartest guy out there, but he is honestly trying to help the people of Pakistan, give the man a chance, he's new at this.

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SESHADRI MN

Oct 24, 2018 09:41pm

@Amin Had IK brought this loan from either US, UK, or european countries then he would have been a good diplomat !

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Pritesh

Oct 24, 2018 09:45pm

Imran Khan dealing with the killers of Jamal Kashhoggi.

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SESHADRI MN

Oct 24, 2018 09:46pm

@Anonymouseeeee You need IMF, IMF doesnt need you.

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Yash

Oct 24, 2018 10:08pm

I still wonder why did Pakistan not ask China for the much required $12b loan?

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PC

Oct 24, 2018 10:08pm

It is not clear whether first 3 Billion Dollar is loan or Grant. Second 3 Billion Dollar of course is form of Loan albeit in the form of deferred payment.If first 3 Billion dollar is grant, then IK has done commendable job.

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R Sultan

Oct 25, 2018 12:32am

Borrowing money from these oil people is worse than corruption - its immoral!

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Tariq, Lahore

Oct 25, 2018 12:34am

There are free lunches 'sometime', this might be one?

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Pathanoo

Oct 25, 2018 01:52am

You pay interest for the " $3 Billion Deposit" and you pay today's top price for the oil that you will pay back in next year when the oil would be cheaper with the world economy slowing down. How is that a good bargain for Pakistan? I do not understand the Math.

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sam

Oct 25, 2018 04:24am

@brr No one will ever know what has been agreed as usual.

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Ali Kazmi

Oct 25, 2018 06:16am

@Murlidharan;

Loan from a friend is better than loan from a Baniya.

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Ali Kazmi

Oct 25, 2018 06:31am

@Yash;

From China we get things without asking.

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Chintamani Gokhale

Oct 25, 2018 07:00am

Well done Imran! This gives you breathing room to start implementing your progressive policies. A stable Pakistan is a must for peace in our part of the world.

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Indian

Oct 25, 2018 01:22pm

@lkhan : Check you fact India's defense budget is only 1.56% of its gdp. Please also check Pakistan's defense budget. You people are going to suicidal path which you would realize in next 25-30 years.

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usr

Oct 25, 2018 04:43pm

This loan and deffered payment for oil will provide respite for one year. Then what?

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usr

Oct 25, 2018 04:44pm

@Assad This loan is more shackle

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usr

Oct 25, 2018 04:47pm

@PC Read the news. It is a loan.

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tatvavetta

Oct 25, 2018 05:17pm

Very good gesture by Saudi Arabia. China is expected to make another good gesture. IMF will sure to grant a loan.
This will make next year manageable.

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PC

Oct 25, 2018 06:34pm

I initially thought that first 3 Billion Dollar is grant from saudi and thought IK has done commendable job. But later, I understand that both are loan in one form or other. Pakistan is under Sea of loan and loan added further, I just can not imagine, how all loans one day will be repaid.Just think about yourself. Suppose, Your monthly income is Rupees One lac but You have ten crore loan from Bank against your name. What will be your state of mind and financial status although Ten crore money artificially looks You too rich.

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lkhan

Oct 25, 2018 11:47pm

@Lohpurush Yes, most economies are loan based, including the USA!

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Raj patel

Oct 26, 2018 12:33am

Is it 3 billion or 6.2 billion per FO.

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A Friend

Oct 26, 2018 02:22am

If a shopkeeper/supplier gives materials on deferred payment price is usually higher. Much higher than the interest lost.
Also there is no competitive bidding..... somewhat like CPEC.

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BAXAR

Oct 26, 2018 12:42pm

@A Friend "If a shopkeeper/supplier gives materials on deferred payment price is usually higher. " You seem to understand very well how economy functions. Were you showing the same concern when the previous government was buying Metro bus and orange trains?

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Dilip Pillai

Oct 26, 2018 01:40pm

So what is Saudi Arabia expecting from Pakistan? There are no free lunches in the world.